and education loans and plan the amount you want to prepay accordingly.

Take a vacation: Taking a break from the regular routine is very important to rejuvenate and come back refreshed. You can use the surplus money you have by taking your family on a vacation. Consider getting away from city life and move closer to nature. Spending on a vacation can be considered as splurging if you are taking them too often and spending beyond your means. However, it is important to relax once in a while and this will help you come back with more positivity.

Invest in yourself: If your financial plans are in place and you get extra money, you can consider investing in yourself and your family. Although splurging on luxuries is not recommended, you can use the extra money to enrich your experience in a new area or acquiring a new skill. Investing in a course which can enhance your skill-sets will help you move ahead in your career as well. You can pursue a hobby which you always wanted to have, but did not because of the cost. You can also invest in a course for inner healing or mental well-being, as these will only help you in your professional life.

Contribute to society: Giving back to the society is rare and not many wealthy people do this. If you find yourself with surplus cash, you can contribute at least a small portion of it to the society. This can be done either by donating to a charitable institution or to an orphanage. You can also support a cause that is close to your heart. These steps can lead to a more satisfying life.

Create a contingency fund when you have excess money. The amount of corpus to be maintained depends on.

Prudent use

age, financial situation and number of dependents you support

* If you have not started investing in equities, this is the time to begin. Equities have known to give the best returns over the long term. Do not invest directly in stocks; rather, it is recommended to start SIPs in some good quality mutual funds

* When you have excess money, pay off part of or all your loans, to the maximum extent possible. Long tenure loans like home loans should be part-paid whenever you get a chance. Aim to pay off the high-interest loans first